the influence of advertising on consumer brand preference

INTRODUCTION

The essence of being in business by anybusiness outfits is to produce for sales and profits.In order to remain in business an organizationmust generate enough sales from its products tocover operating costs and post reasonable profits.For many organizations, sales estimate is thestarting point in budgeting or profit planning. Itis so because it must be determined, in most cases,before production units could be arrived at whileproduction units will in turn affect materialpurchases.

However, taking decision on sales is the mostdifficult tasks facing many business executives.This is because it is difficult to predict, estimateor determine with accuracy, potential customers’demands as they are uncontrollable factors exter-nal to an organization. Considering, therefore, theimportance of sales on business survival and theconnection between customers and sales, it isexpedient for organizations to engage in progra-mmes that can influence consumers’ decision topurchase its products. This is where advertisingand brand management are relevant. Advertisingis a subset of promotion mix which is one of the4ps in the marketing mix i.e product, price, placeand promotion. As a promotional strategy, adver-tising serve as a major tool in creating productawareness and condition the mind of a potentialconsumer to take eventual purchase decision.

© Kamla-Raj 2005 J. Soc. Sci., 10(1): 9-16 (2005)

The Influence of Advertising on Consumer Brand PreferenceAdeolu B. Ayanwale, Taiwo Alimi and Matthew A. Ayanbimipe

Department of Agricultural Economics, Obafemi Awolowo University, Ile-ife, Osun State, NigeriaE-mail: [email protected]

KEYWORDS Advertisement; consumer loyalty; brand; manufacturer

ABSTRACT The proliferation of assorted brands of food drinks in the country has led to cut-throat competition forincreased market share being witnessed among the operators in the food drink industry. When competition is keen andthe consumers are faced with brand choice in the market, it becomes imperative for the manufacturers to understandthe major factors that can attract the attention of buyers to his own brand. These then form the basis for marketingpanning and action. This study, which was based on a survey of 315 randomly selected consumers of food drinks inLagos, Ibadan and Ile-Ife, cities in Southwestern Nigeria, examined the role played by advertising in influencingconsumers preference for Bournvita, which is one of the leading food drinks in the Food and Beverage industry inNigeria. Results revealed that both male and female and different age groups were equally influenced by advertising intheir preference for the brand. 38.73% of the consumers showed preference for Bournvita out of the various brandsof the food drink studied. The major reasons advanced for the preference are its captivating advertising (42.62%) andrich quality (40.16%). TV advertising was most preferred by 71.43% of the respondents of all the media used inadvertising Bournvita. The need for high preference to advertising is therefore highlighted for companies that wantto not only retain their market but take positive steps to increase their market share.

LITERATURE REVIEW

Definition of Advertising

Advertising, sales promotion and publicrelations are mass-communication tools availableto marketers. As its name suggests, mass commu-nication uses the same message for everyone inan audience. The mass communication tools tradeoff the advantage of personal selling, theopportunity to tailor a message to each prospect,for the advantage of reaching many people at alower cost per person (Etzel et al., 1997).

Today, definitions of advertising abound. Wemight define it as communication process, amarketing process, an economic and socialprocess, a public relations process or an infor-mation and persuasion process (Arens, 1996).

Dunn et al. (1978) viewed advertising from itsfunctional perspectives, hence they define it as apaid, non-personal communication throughvarious media by business firms, non-profitorganization, and individuals who are in someway identified in the advertising message andwho hope to inform or persuade members of aparticular audience.

Morden (1991) is of the opinion that adver-tising is used to establish a basic awareness ofthe product or service in the mind of the potentialcustomer and to build up knowledge about it.Kotler (1988) sees advertising as one of the four

10 ADEOLU B. AYANWALE, TAIWO ALIMI AND MATTHEW A. AYANBIMIPE

major tools companies use to direct persuasivecommunications to target buyers and publicnoting that “it consists of non-personal forms ofcommunication conducted through paid mediaunder clear sponsorship”. According to him, thepurpose of advertising is to enhance potentialbuyers’ responses to the organization and itsoffering, emphasizing that “it seeks to do thisproviding information, by channeling desire, andby supplying reasons for preferring a particularorganization’s offer.

While writing on advertising nature andscope, Etzel et al. (1997) succinctly capture alladvertising as having four features:(i) A verbal and or visual message(ii) A sponsor who is identified(iii) Delivery through one or more media(iv) Payment by the sponsor to the media

carrying the message.Summarizing the above, they conclude that

“advertising then consist of all the activitiesinvolved in presenting to an audience a non-personal, sponsor-identified, paid-for messageabout a product or organization”.

Those views of Etzel et al. (1997) coincide withthe simple but all-embracing definitions of Davies(1998) and Arens (1996). For instance, whileDavies states that “advertising is any paid formof non-personal media presentation promotingideas/concepts, good s or services by an identi-fied sponsor. Arens expressing almost the sameview describes advertising as “the personalcommunication of information usually paid forand usually persuasive in nature about products(goods and services) or ideas by identifiedsponsors through various media”.

From the foregoing, it could be concluded thatthe purpose of advertising is to cerate awarenessof the advertised product and provide informationthat will assist the consumer to make purchasedecision, the relevance of advertising as apromotional strategy, therefore, depends on itsability to influence consumer not only to purchasebut to continue to repurchase and eventuallydevelop-brand loyalty. Consequently, manyorganizations expend a huge amount of moneyon advertising and brand management.

A brand is a name given by a manufacturer toone (or a number) of its products or services.Brands are used to differentiate products fromtheir competitors. They facilitate recognition andwhere customers have built up favorable attitudetowards the product, may speed the individual

buyers through the purchase decision process.Individual purchasers will filter out unfavourableor un-known brands and the continued purchaseof the branded product will reinforce the brand-loyal behaviour. Without brands, consumercouldn’t tell one product from another andadvertising then would be nearly impossible.

Advertising and Consumer Behaviour

Advertiser’s primary mission is to reachprospective customers and influence theirawareness, attitudes and buying behaviour. Theyspend a lot of money to keep individuals (markets)interested in their products. To succeed, theyneed to understand what makes potential custo-mers behave the way they do. The advertisersgoals is to get enough relevant market data todevelop accurate profiles of buyers-to-find thecommon group (and symbols) for communicationsthis involves the study of consumers behaviour:the mental and emotional processes and thephysical activities of people who purchase anduse goods and services to satisfy particular needsand wants (Arens, 1996).

Proctor et al. (1982) noted that the principalaim of consumer behaviour analysis is to explainwhy consumers act in particular ways undercertain circumstances. It tries to determine thefactors that influence consumer behaviour,especially the economic, social and psychologicalaspects which can indicate the most favouredmarketing mix that management should select.Consumer behaviour analysis helps to determinethe direction that consumer behaviour is likely tomake and to give preferred trends in productdevelopment, attributes of the alternativecommunication method etc. consumer behavioursanalysis views the consumer as another variablein the marketing sequence, a variable that cannotbe controlled and that will interprete the productor service not only in terms of the physicalcharacteristics, but in the context of this imageaccording to the social and psychological make-up of that individual consumer (or group ofconsumers).

Economic theory has sought to establishrelationships between selling prices, salesachieved and consumers income, similarly,advertising expenditure is frequently comparedwith sales. On other occasions financial account-ing principles maybe applied to analyse profit andlosses. Management ratios, net profit before tax,liquidity and solvency ratios can all be investi-

11THE INFLUENCE OF ADVERTISING ON CONSUMER BRAND PREFERENCE

gated. Under the situations the importance of theconsumer’s motivations, perceptions, attitudesand beliefs are largely ignored. The consumer isassumed to be “rational” that is, to react in thedirection that would be suggested by economictheory and financial principles. However, it is oftenapparent that consumer behaviours does not fallneatly into these expected patterns. It is for thesereason that consumer behaviour analysis isconducted as yet another tool to assess thecomplexities of marketing operations.

The proliferation of assorted brands of fooddrinks in the country has led to the cut-throatcompetition for increased market share beingwitnessed currently among the operations in thefood drink industry. Today, in Nigeria, there existsmore than twenty brands of food drink both localand foreign, out of which two, namely CadburyNigeria Plc’s Bournvita and Nestle Nigeria Plc’sMilo keenly compete for market leadership. Thereare quite a host of up-coming and low-pricelocalized brands in small sachets with “Vita”suffixes springing up in every nook and crannyof the country. Existing and popular brands,therefore, face intense competition with the“affordable” localized” “Vitas” with high sugarcontent targeted at the low-income groups. It is,therefore, imperative for the more establishedbrands like Bournvita to employ brilliantadvertising and branding strategies to influenceconsumers’ behaviours in order to continue toenjoy and maintain market leadership.

Given the competitive environment in thefood and beverages sub sector of the economyand the high potential of advertising in helpingcompanies realise and retain their position thispaper examine the influence of advertising on aleading company in the food and beverages subsector as a case study.

Objectives of the Study

The purpose of this study is to examineactivities of Cadbury Nigeria PLC with respect tobranding and advertising of Bournvita which isthe flagship of its products. This research workis also designed to achieve the following specificobjectives. To:(i) examine the influence of advertising on

consumer buying behaviours(ii) determine the influence of age on advertising(iii) make recommendation for further improve-

ment in advertising and brand managementso as to assist Cadbury Nigeria PLC in

particular and other firms in the Food andBeverage industry in general in their marketingefforts to increase their market shares.The paper tested the hypothesis that the age

group of consumers does not determine thereception of advertising efforts by CadburyNigeria PLC.

THE COMPANY –CADBURY NIGERIA PLC

Cadbury Nigeria Plc, the subject of this study,is the leading company in Nigeria in confection-ary, food drinks, and foods whose quality brandsand products are available and enjoyed in all 36states of the nation and Federal Capital Territoryas well as in export market around the world.Cadbury Nigeria Plc was incorporated on 9th

January. 1965 and it has since grown to become aleading manufacturing concern in the Food andBeverage sector maintaining its leader-ship rolein the business community and the society atlarge.

In 1976, the company went public and thishas significantly increased its scope of opera-tions. Listed in the elite First tier securities of theNigerian Stock Exchange (NSE), Cadbury NigeriaPLC’s shares are actively traded in the stockmarket and it is one of the fast moving stocks andprice gainers in the Food/Beverages and Tobaccosector in particular and in the equities market ofthe NSE in general.

Cadbury Nigeria PLC engages in the foodprocessing business, its major product linesconsist of food drinks, sugar confectionerychocolate and seasoning cubes. The company ispresently partly owned by the Nigeria Public andthe foreign technical partner the CadburySchweppes Group of United Kingdom, whichprovides the company with technical servicesunder a Technical services Agreement approvedby National Office for Technology Acquisitionand Promotion (NOTAP), and holds 40% of theissued share capital while the balance is held bythe Nigeria Public (Cadbury Nigeria Plc AnnualReport, 1999).

Apart from Bournvita, brands such as Pronto,Richoco, among others, are also found in thecompany’s product Portfolio (Fact File, 1998/99).However, Cadbury’s flagship brand, Bournvitais, no doubt, in a competitive environment withother brands such as Milo, Vitalo, Ovaltine,Nescafe, Toptea, Lipton and other cheaper localbrands all of them striving to increase their market


share through varying marketing strategies suchas sales promotion, personal selling and provisionof point-of-sale materials such as T-shirts, Cups.Posters, Shelf strips etc to stir, attract and retainmore consumers of their products. (Oladosu,1993). In view of this, effective communicationbetween the firm and the market place throughadvertising stressing product benefits andbrilliant brand management are sure ways ofincreasing market share, maintaining marketleadership and creating band-loyal behaviour intheir consumers.

Data Source

The data used for this study were obtainedfrom basically two sources. Primary andSecondary. However, the major data for the workwere collected by means of structured question-naire. Three hundred and fifty (350) copies ofquestionnaire were administered on the membersof the public through trained personnel in threemajor cities namely: Lagos, Ibadan and Ile-Ife at150,100, and 100 copies, respectively. The res-pondents were selected randomly at each of thelocations while the distribution was aimed atreflecting the population of each of these cities.

However, three hundred and fifteen (315) ofthe questionnaire representing 90% of the totalwas responded to. In 138 representing 92% fromLagos, 77(77%) from Ibadan while all the 100questionnaire were responded to in Ile-Ife. Of thetotal of 315 respondents, 158(50.165) were male157(49.84%) were female.

The secondary data that were also of greatassistance were extracted from the company’sannual reports and other in-house publicationsfor the period under study.

Analysis of Data

Both descriptive and inferential statistics wereused in analyzing the data collected. The respons-es by the consumers to some items of the question-naire were complied into tables according to themain variables being examined. Percentage analy-sis was used in examining variables such as consu-mer brand preference, media preference aware-ness sources, etc while inferential statistical model,χ2 (Chi-Square) was used in testing the hypo-thesis generated from the study. The χ2 values cal-culated was compared with the tabulated valuesof χ2 using 5% significance level and 2 degreesof freedom.

RESULTS

Vital socioeconomic parameters of interestwere investigated to bring to the fore salientcharacteristics of the respondents.

Sex Frequency PercentageMale 158 50.16Female 157 49.84Total 315 100

Table 1: Distribution of consumers by sex

Source: Analysis of Field Survey (2000)

Table 2: Consumer’s age distribution


Age in Years Frequency Percentage<10 21 6.6711-15 27 8.5716-20 29 9.2121-25 42 13.3326-30 35 11.1131-35 49 15.5636-40 46 14.641-45 24 7.6246-50 10 6.0351-55 12 3.8156-60 11 3.49Total 315 100.00

Table 1 above revealed that consumers of theproducts are almost evenly distributed amongboth sexes, with the number of males marginallyhigher than that of female. This may suggestgender neutrality in the consumption of theproducts.

As presented above, the Table 2 showed theconsumers’ age range between 10 and 60 years.Its could be seen from the distribution that themodal age group is between 31-35 with about 15percent of the total sample. Over 30 percent ofthe respondents are within the age range ofbetween 31-40 years. The obvious implication ofthis finding is the dominance of youths in themarket for the products of this company. Elderlypeople may not be too eager to consumer theproduct for reasons ranging from health tofinance.

Table 3 shows that the three brands (Bournvita,Milo and Richocco) made up more than 75% ofthe brand preference of consumers. The largenumber of brands highlights the high competi-tiveness of the industry and the need for concert-ed efforts by the various companies not only tomaintain their market but to increase their marketshare.


Brands Frequency PercentageBournvita 122 38.83Milo 70 22.22Richoco 59 18.73Vitalo 16 5.08Ovaltine 10 3.18Lipton 8 2.54Nescao 7 2.22Pronto 5 1.59Others 18 5.71Total 315 100

Table 3: Consumers’ brand preference


The reasons for brand preference by theconsumers depicted by the Table 4 above rangefrom Advertising (50.48%) to Packaging (0.95%).The importance role of advertising in retainingand increasing the company’s market is obviousfrom the result and instructive to the managementof the company. Advertising and Qualitydifference made up about 90% of the reason forthe observed brand preference.

Table 5 shows Bournvita topped the prefer-ence table of Cadburys product with 65.59% ofthe consumers expressing their preference.

Table 4: Consumers reasons for brand preference

Source: Analysis of Field Survey (2000).

Reasons Frequency Percentage

Advertisement 159 50.48Quality 124 39.37Availability 19 6.03Price 6 1.9Packaging 3 0.95No Response 4 1.27Total 315 100.00

Table 5: Consumers’ preference for Cadbury’s brandsBrand Frequency PercentageBournvita 122 65.69Richocco 59 31.59Pronto 5 2.69Total 186 100Source: Analysis of Field Survey (2000)

The Table 6 highlights the reasons advanc-ed for preferring Bournvita by the respondents.Most 42.62% of the consumers gave advertisingas the reason for their preference, while 2.46% ofthe consumers gave the packaging of the brandas their reasons for preference. Tables 6 and 7shows the prevailing role of advertising inpromotion of Bournvita. Obviously Bournvita isthe most advertised product of the company, no


No of Years Frequency PercentageOver 20 years 151 47.94Over 15 years 75 23.81Over 10 years 42 13.33Over 5 years 47 14.92Total 315 100

Table 8: How long consumers have known Bournvita

Table 7: Consumers’ sources of awareness of Bournvita


Sources Frequency PercentageAdvertising 186 59.05Word-of-Mouth 97 30.79Sales Promotion 23 7.30Can’t Remember 9 2.86Total 315 100

wonder that it is the most preferred of thecompany’s products.

Table 7 shows that the most (59.05%) consu-mers were aware of Bournvita through adverti-sing. However, 2.86% could not remember howthey came about the brand.

Reasons Frequency PercentageAdvertisement 52 42.62Quality 49 40.16Availability 13 10.66Price 5 4.1Packaging 3 2.46Total 122 100


Table 6: Consumers’ reasons for preferring Bournvita

Table 8 shows the number of years consumershave been aware of Bournvita. Analysis from theTable showed that 47.94% of the consumers haveknown the brand for over 20 years while 14.92%of them have known it over 5 years. This productdoes not seem to follow the product lifecyclemodel going by the experience and increaseddemand for it inspite of long years of itsintroduction into the market. The assertion thatsome products may not follow the productlifecycle model may be true in this case.

Table 9 reveals five different media used inadvertising Bournvita and how consumersviewed them in order of preference. The resultsshowed that most consumers (71.43%) expressedtheir preference for TV advertising of Bournvitawhile Newspaper and Magazine advertisingshared 4.44% consumers each. The powerfulcombination of sound and vision in the TV


advertisements might be reason behind theexpressed preference for this media.

different food drinks brands which featured inthis study, Bournvita topped the brand preferencetable both in the food drink industry in generaland in Cadbury’s food drink brands in particularimplying that it still remains the favorite food drinkconsumers and enjoys undisputed loyalty amongthe largest percentage of the respondents.

According to the respondents, advertisingand quality are the major factors responsible forthe success of Bournvita. Very few subjects citedother reasons such as price, packaging andavailability for their choice of the brand. Theimplication of this is that price and other variablesseem not to count much to the consumers as longas the quality of a product is maintained and thebrand is also supported by heavy advertisingreminding and persuading consumers to continueto buy.

Considering the number of years this producthas been in existence vis-à-vis the time it hasbeen known by the respondents, majority of theconsumers claimed to have known Bournvita forbetween 10 and 20 years. And for Bournvita tohave been in existence for more than 20 yearsand still remain the delight of many consumers offood drinks, it is evident that the brand hasenjoyed a relatively prolonged life cycle.

The results of the study also showed thatadvertising of various kinds served as therespondents’ major source of awareness ofBournvita. A combination of different media, bothelectronic and print, are employed in advertisingBournvita. Of these, however, Television is seenas the most potent and effective medium whichmost consumers (71.43%) cited. This implies thatTelevision, as a medium of advertising a product,has more impact on the respondents whencompared with any other media being used forthe same purpose.

In the final analysis, the null hypothesis statedfor the study was not rejected as the chi-squaretest revealed that age group of consumers doesnot determine the reception of advertising efforts

Table 10 presented the perception by agegroup of the influence of advertising on Cadburysproduct in an attempt to test the formulatedhypothesis. From the results in the Table 10,54.17% children and 51.61% youths agreed to thefact that advertising had influence on the salesof Bournvita. The results was used to draw up acontingency χ2 table to obtain the χ2 calculated.At 2 df and 5% significance level, the χ2 tabulatedis 5.991 while the calculated χ2 value was 0.559which is lower. We therefore do not reject the nullhypothesis and conclude that age group ofconsumers does not determine the reception ofadvertising efforts of Cadbury Nigeria Plc.

DISCUSSION

The study on consumer purchase in the fooddrink industry was based on a survey of 315consumers and sought to examine the influenceof advertising on consumers’ purchase ofBournvita, one of the products manufactured byCadbury Nigeria Plc. It was also designed, amongother things, to investigate the relationshipbetween age group and advertising influenceseeking to know specifically whether receptionof advertising efforts of Cadbury Nigeria Plc isdependent on consumers’ age bracket.

The obtained data from the survey supportedthe motion that brand preference exists in the fooddrink industry and that advertising efforts canaffect product preferences. Of more than 12


Media Frequency PercentageTelevision 225 71.43Radio 45 14.29Out door display 1 7 5.4Newspaper 14 4.44Magazine 14 4.44

Total 315 100

Table 9: Consumers perception of media use in ad-vertising bournvita

Response Children % Youths % Adults % Total(6-15 years) (16-35 years) (36-60 years)

Yes 26 54.17 80 51.61 54 48.21 166No 22 45.83 75 48.39 58 51.79 155Total 48 100 155 100 112 100 315

Table 10: Advertising influence on age group



of Cadbury Nigeria Plc. The implication of this isthat whether male or female, the advertising impactaffects the respondents alike. The purpose ofadvertising in creating awareness and influencingpurchasing decision in consumers can beachieved through effective campaign aimed at awell-selected target market irrespective of the agegroup in the chosen market segment.

CONCLUSION AND IMPLICATIONS

Quite a number of important conclusions canbe drawn from the findings of this study whichhave policy implications for the company understudy and others in the industry.

Brand preference does exist in the food drinkindustry. Many consumers do not buy whateveris available or affordable if a product is good valuefor its price, it will command brand loyalty.However, advertising helps in projecting productquality and value before the consumers. This iswhat is applicable to Bournvita presently.

Advertising has a major influence onconsumers’ preference for Bournvita and it has,in no small measure, contributed to its success.The same thing goes for its quality. Having beenknown for more than between 10 and 20 years bymajority of the respondents and still remain theirfavorite food drink, the brand has definitelyenjoyed a prolonged life cycle apparently beingregenerated by advertising. The stage a productis in its life cycle is very important to a marketeras it help in determining the type of marketingstrategies to be embarked upon in respect of thesaid product. From this study, Bournvita isapparently a mature product and the company’smanagement must ensure that it does not slip todecline stage as this may mark the beginning ofits demise. Towards this end, the management isadvised to carry out the following:(i) research continuously into quality improve-

ment that will make consumers enjoy goodvalue for money paid to purchase the brand.

(ii) Develop more effective advertising campaignthat attracts consumer’s attention and capturetheir interest. At this stage the company’sadvertising messages should both bepersuasive and reminder-oriented. Themessages must be strong and appealingenough to persuade and build brandpreferences, encourage switching to thecompany’s brand by changing the perceptionof the consumers of rival brands the product.

Comparative advertising, a variant ofpersuasive advertising, could be useful in thisregard as it seeks to establish the superiorityof one brand through specific comparisonwith one or more other brands in their productclass.With regards to the advertising media, this

study revealed that Television is currently themost potent of all media used in advertising aproduct. In view of this, more consideration shouldbe given to television as a medium of advertising.This may be because Television combines motion,sound, and special visual effects. The productcan be demonstrated and described on T.V. it alsooffers wide geographic coverage and flexibilityas to when the message can be presented (Arens,1996). However, this is not saying that other mediashould be used. In fact, the company shouldcontinue to employ integrated advertising of theirproduct. More budget could be devoted to TVadverts in view of the consumers’ preference onit. Moreover, advertising campaign should notbe selective or age-oriented, as it has been shownfrom the study that advertising does not varyingimpact on age group.

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